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Civil Aviation Authority of Singapore
Media Release

CAAS to Start Sustainable Aviation Fuel Levy for Origin-Destination Passengers, General and Business Aviation Flights from 1 October 2026 for Flights Departing from 1 January 2027

3 September 2026

CAAS announces treatment of SAF environmental attributes purchased from SAF Levy; SAFCo completes first procurement trial; Deferment of SAF Levy for cargo shipments to 1 October 2027 for flights departing from 1 January 2028

             As announced previously on 10 November 2025, the Civil Aviation Authority of Singapore (CAAS) will start the Sustainable Aviation Fuel (SAF) Levy for all Origin-Destination passengers and general and business aviation flights departing Singapore from 1 January 2027, for tickets or services sold from 1 October 2026. The SAF Levy must be reflected as a distinct line item in the fare breakdown, like for other taxes and charges.

Treatment of SAF Environmental Attributes

2             Under the Civil Aviation Authority of Singapore (Amendment) Act 2025, all SAF Levies collected will be channelled to a statutory SAF Fund and used to purchase SAF and/or related environmental attributes[1](EAs) and to cover associated administrative costs. The Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a non-profit Company Limited by Guarantee wholly owned by CAAS, will be the designated collection agent for the SAF Levy and will also procure, manage, account for and allocate SAF and SAF EAs. SAFCo has been working with airlines and industry stakeholders to develop the operational processes and systems needed for levy returns and collection.

3               SAFCo will aggregate the SAF demand arising from the SAF Levies collected and voluntary SAF demand and procure the SAF and associated EAs. Under SAFCo’s framework for SAF Levy collection, procurement and EA management (refer to Annex (opens in new tab)), the EAs associated with SAF will be managed separately from the physical fuel and allocated to eligible users. This will be done in a transparent, traceable and verifiable manner while safeguarding environmental integrity, and in compliance with sustainability requirements, including the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Fuels certification standards.

4               The SAF EAs procured by SAFCo will have two components: covering Scope 1 and Scope 3 emissions[2], respectively. SAFCo will allocate Scope 1 EAs to aircraft operators to support requirements under ICAO’s CORSIA and ICAO’s Long-Term Aspirational Goal of net zero carbon emissions for international aviation by 2050. Allocations will be made in proportion to the aircraft operators’ relative SAF Levy contributions, for operators with material volumes above a minimum allocation threshold of 0.01% of total SAF Levies collected. This is expected to cover more than 80 passenger aircraft operators.

5             SAFCo will centrally manage all Scope 3 EAs as well as any Scope 1 EAs that are not allocated to aircraft operators. These EAs will be made available to organisations seeking to reduce emissions associated with business travel and air freight activities. Proceeds from the sale of these EAs will be used to purchase more SAF and facilitate greater SAF uptake.  

Procurement for First Voluntary SAF Trial

6              To validate the operational, commercial and accounting processes for SAF procurement and EA allocation, in August 2026, SAFCo, with support from CAAS, successfully completed procurement for its first voluntary SAF trial. Nine companies participated in the trial; they were namely the Boston Consulting Group, Changi Airport Group, DBS Bank, GenZero, Google, OCBC, Temasek; and including two airlines, Singapore Airlines and Scoot. The trial also demonstrated how companies and airlines can work together to support aviation decarbonisation, leveraging SAF EAs to expand the voluntary demand for SAF. SAFCo plans to launch a Request for Proposal for SAF procurement from the SAF Levy by end 2026. The procurement will be conducted in a manner that is transparent, competitive and cost effective, with the first batch of SAF expected to be delivered and uplifted in mid-2027. 

Deferment of SAF Levy for Cargo Shipments

7             CAAS will defer the implementation of the SAF Levy for air cargo shipments by one year, to apply to services sold from 1 October 2027 for flights departing Singapore from 1 January 2028. Compared to airlines’ passenger operations, cargo operations are more diverse and involve a wider range of stakeholders – such as airlines, air express companies, freight forwarders and shippers – and varying commercial arrangements. Taking into account industry feedback, the one-year deferment will allow more time for CAAS to work with industry to develop and implement a robust SAF Levy collection mechanism for cargo shipments on departing flights.

8             Mr Han Kok Juan, Director-General of CAAS, said: “CAAS has worked closely with airlines and other global industry partners to set up a robust regime for SAF levy collection, procurement and environmental attributes management. In doing so, CAAS seeks to lay the foundation for Singapore to serve as a trusted hub for SAF-related economic activities in the region.” 

Annex – Framework for SAF Levy Collection, Procurement and EA Management (opens in new tab)

[1] SAF EAs is a value representing the difference in carbon dioxide (CO2) emissions of SAF throughout its life cycle and those of the same quantity of conventional aviation fuel throughout its life cycle. SAF EAs may be used by a person to meet offsetting requirements applicable to that person under CORSIA developed by ICAO or other similar programmes or reported by a person as carbon emissions reduction from the use of SAF under any scheme applicable to or adopted by that person for the reporting of environmental sustainability efforts undertaken by that person to stakeholders or investors of that person or regulators of the business of that person.

[2] In sustainability reporting, Scope 1 covers direct carbon emissions from sources controlled by the organisation, such as fuel combustion for airlines. Scope 2 covers indirect emissions from purchased energy, such as electricity. Scope 3 covers indirect emissions other than from the generation of purchased energy, including goods transport and business travel.

About the Civil Aviation Authority of Singapore
The mission of the Civil Aviation Authority of Singapore (CAAS) is to grow a safe, vibrant air hub and civil aviation system, making a key contribution to Singapore's success. CAAS' roles are to oversee and promote safety in the aviation industry, develop the air hub and aviation industry, provide air navigation services, provide aviation training for human resource development, and contribute to the development of international civil aviation. For more information, visit www.caas.gov.sg (opens in new tab).

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Civil Aviation Authority of Singapore (opens in new tab)